Safeway’s major competitors all have a big pool of customers all across the nation and are all recognizable companies. Kroger’s, Walmart, Whole Foods, Costco, and HEB are all in this monopolistic competition. Grocery stores and supermarkets can all be very similar in service, but Safeway has devised a plan to differentiate itself from the competitors. Safeway has been lowering their prices lower than their competitors. They can price their products lower than Kroger’s because Kroger’s has a much more diverse assortment of all the same products. Safeway on the other hand has a smaller array of private label products from special distributors. Instead of the common brands that are sold at all other grocery stores and supermarkets, Safeway has …show more content…
Our prediction was that Whole Foods Market is going to be substantially more expensive than Safeway. After doing our research, we matched certain organic produce against regular produce. The general conclusion of this comparison was that Safeway had cheaper regular produce than Whole Foods organic produce. However, the price difference over 9 of the exact same produce (limes, gala apples, garlic, parsley, cilantro, green lettuce, green onion, carrots, bananas) besides the authenticity of “organic” and “regular” produce was only two dollars. Let’s now compare the meat produce. Whole Foods’ poultry is marketed as a free range chicken while Safeway’s poultry is marketed as chicken. The difference between these two prices was almost a five dollar saving by shopping at Safeway. This product might have an inverse effect on certain people because chicken is an important protein to any person’s diet. There might be chemicals and other treatment that causes the quality of the chicken to change the price tag, but if people are willing to save money over the long run, they will choose Safeway. Next up we compared a few